The sum of the principal and the interest on an investment is called the _____ value.

Q: How do I find the total interest earned?

A: Interest earned:   Interest earned is the amount of interest earned over a specific period of time…

Q: How can we use special financial functions to determine the total interest?

A: Financial functions have made financial calculations easy using excel, they make you calculate the…

Q: What does the formula developed for calculating compound interest express?

A: Answer: Compound interest is nothing but interest earned on interest. In case of simple interest…

Q: In what situations is interest capitalized?

A:

Q: What interest rates should be used in determining the amount of interest to be capitalized? How…

A:

Q: Discuss the accounting problems associated with interest capitalization.

A: Interest capitalization: Capitalization interest is the cost of funds that are used to finance for…

Q: How does the "Net Operating Working Capital"  differ  from    "Net Working Capital "? (write only…

A: Net Operating Working Capital: It is the difference between the total long period assets and total…

Q: Which statement is true? * General borrowings may earn investment income deductible against general…

A: Business may borrow funds for the purpose of business. These borrowings can be general borrowings or…

Q: In what situations is interest capitalized rather than expensed?

A: Capitalized interest is the cost of the funds used to finance the construction of a long term asset…

Q: what sense is a firm's WACC also the rate of return that should be earned on its investments?

A: Step 1   The WACC of a company is the overall needed return, which is the discount rate that should…

Q: The factor payment for the use of financial capital (loans and equity investments) is called...…

A: The cost of finance: Equity and debt are two sources of capital for any business.  Investors who…

Q: Define Interest Capitalization.

A: Interest Expense: The cost of debt which is incurred during a particular accounting period is called…

Q: What is the present worth for the investment represented by the given cash flow? Interest is 12%.

A: Present Worthbis the sum of present value of cash flows discounted at the required rate of return.

Q: rest that is converted into principal and thus, also earns interest?

A: Step 1   Simple interest is a fixed proportion of the principal amount borrowed or lent that is paid…

Q: The net present value of an investment represents the difference between the:

A: The Answer :

Q: What are two kinds of paid-in capital accounts?

A: Paid in capital is amount raised by companies by issues of common stock or preferred stock.Paid in…

Q: Which of the following methods consider the time value of money? A. payback and accounting rate of…

A: Time Value of Money The time value of money is the concept that money you have now is worth more…

Q: How is Compound Interest calculated?

A: Compound interest refers to the addition of interest amount to the principal. The concept of…

Q: State TWO (2) factors that differentiate between the Rate of Return and Cost of Capital.

A: The rate of return and cost of capital are key considerations in financing and investing. These…

Q: Which types of investments are valued at amortized cost? Explain the rationale for this accounting.

A:

Q: what is the formula for compounding interest?

A: Compound interest can be defined as the interest earned on principal amount and on all previous…

Q: It is the fractional part of the capital or sum invested that is paid for the loan or investment.…

A: 1. The rate of interest is some predecided percentage that is charged on the loan amount or provided…

Q: What is the initial investment plus interest?

A: The total of initial investment and interest will give the total value or worth of the investment…

Q: The borrowing cost to be capitalized in general borrowing cost is the lower between the amount…

A: General borrowing cost refers to the borrowing cost like interest expense, finance charges on the…

Q: What is the relation between the present value of an investment and time and interest rate?

A: The concept of present value of an investment and time and interest rate is an important concept of…

Q: a. What is STP's unlevered cost of capital? b. What is STP's after-tax debt cost of capital? c. What…

A: a) Total common stock value = 32 * 12 = 384 Total debt = 100 Total value = 384 + 100 = 484 Unlevered…

Q: 8. How should internal rate of return be calculated in terms of Net Present Value?

A: For a given project, there is a cost incurred at the beginning. It is called the Initial cost of the…

Q: What is the internal rate of return? How is it used? How does it relate to the concept of compound…

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: What is the actual cost of capital to the borrower?

A: The cost of capital to the borrower is the weighted average cost of capital from all sources of…

Q: What is another way of saying "Interest earned on interest"?

A: "Interest earned on interest" means the interest earned on the interest amount which was earned on…

Q: Why does the interest in the original investment or the capital cost is included as a cost in the…

A: The annual worth method is the method in which all the cash flows are equally distributed across the…

Q: (a) The amount financed is $ (Round the final answer to the neare (b) The interest is $ (Round the…

A: Amounts financed in the above case will be equal to the present discounted value of future payments.…

Q: What is meant by the following terms? You should provide an example of each to support your answer.…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: What is the amount of tmes-Interest earned?

A: Times Interest Earned: Times interest earned is a ratio which states with how many times the…

Q: 2. Why are investments shown as a current asset?

A: Financial Statement:   They are annual reports of an organization summarising the financial…

Q: How much is the legal capital?

A: Legal capital refers to the par value/stated value of the shares issued.

Q: BRIEFLY ASSESS HOW TAXATION CAN BE USED TO CONTROL: a. BALANCE OF PAYMENT, b. SAVING, c.…

A: Taxation is the government's tool for shaping the economy into the desired shape. Governments…

Q: Do you consider this statement to be true? The compound interest seen with the F / P factor is the…

A: Statement is true

Q: Question 16 The undepreciated capital cost (UCC) is equal to

A: The acronym CCA stands for Capital Cost Allowance system wherein the company claims a percentage of…

Q: Describe the accounting problems associated with interest capitalization.

A: Interest capitalization: Capitalization interest is the cost of funds that are used to finance for…

Q: Which of the following will cause owner's capital to decrease? Select one: a. Capital b. Profit c.…

A: SOLUTION- DRAWINGS-  IT IS THE AMOUNT TAKEN BY THE OWNER OF A BUSINESS FOR HIS PERSONAL USES . IT…